Apparatus and method for sharpening a tool, such as a chisel. A sharpening guide applies a clamping force to secure the tool and advances a beveled leading edge surface of the secured tool against an abrasive surface to sharpen a cutting edge while the guide is in an upright orientation. An alignment plate nestingly receives the guide in an inverted orientation to align the tool prior to sharpening. During alignment, a back surface of the tool slidingly contacts an upper plate surface and the cutting edge contactingly abuts an alignment feature which projects from the plate surface. In some embodiments, the alignment feature comprises a removable alignment pin selectively insertable into a plurality of spaced apart apertures, each providing a final bevel angle for the sharpened tool.